News

, February 27, 2009

Ordina sells BPO activities to Centric

Following the press release of 25 November 2008, Ordina announced today that it has sold its business process outsourcing division, Ordina BPO B.V., to Centric. Centric will acquire all shares in Ordina BPO B.V., including all rights and obligations, from Ordina on 1 April 2009. The sale is subject to the approval of the Netherlands Competition Authority (Dutch acronym: NMa).

The sale will be finalised within a few weeks after the review process by the Competition Authority and the usual final settlements. With the sale, the existing employee and client base will be transferred to Centric. Ordina BPO B.V. currently employs approximately 330 employees.

Ordina announced on 25 November 2008 not to continue its BPO activities under the Ordina umbrella on a permanent basis. This was motivated by the sustained losses that were suffered on these activities due to Robeco Direct's sudden exit as one of Ordina's largest BPO clients, the higher than initially planned investments to create multi-bank application platforms, and the severely deteriorating market conditions in the financial market.

Ordina BPO's revenue for 2008 was approximately EUR 43 million. Its operating loss for the full year 2008 landed at EUR 12.5 million before corporate income tax. As announced on 25 November 2008, an impairment loss on the major part of Ordina BPO's tangible and intangible fixed assets will be recognised in the results for 2008 as a direct result of the fact that no positive future cash flows are to be expected. Ultimately, this impairment totals an amount of EUR 72.5 million before corporate income tax. This amount includes the impairment of EUR 6.2 million that was already charged against the first half results of 2008.

The loss that results from today's transaction, including the operational results in the first quarter of 2009, amounts to approximately EUR 34 million. Of this amount, EUR 32 million will be charged against the results of 2008. A large part of this amount will be paid to Centric in compensation for future investments and operational costs. Parts of these payments will be settled in the second half of 2009 and the first half of 2010.

Says Ronald Kasteel, CEO of Ordina N.V.: "The long-term strategic opportunity that continues to characterise the BPO initiative did not outweigh the negative impact of the BPO activities on Ordina's overall financial performance. By transferring our BPO activities to Centric, which has already built a strategic position in BPO when it comes to pensions, we have created continuity for clients and job security for employees who are affected by the sale. Ordina can now fully focus on its profitable Consulting, ICT and Application Outsourcing activities, and build a sound future."

Ordina will present its financial results for 2008 on Tuesday, 3 March 2009.